Asked by Jenny Mclin on Apr 25, 2024
Verified
At the profit-maximizing level of output, marginal profit
A) is also maximized.
B) is zero.
C) is positive.
D) is increasing.
E) may be positive, negative or zero.
Marginal Profit
The additional profit that is generated by increasing product sales by one unit.
Profit-Maximizing Level
The output level at which a firm achieves the highest possible profit, where marginal cost equals marginal revenue.
- Acquire knowledge about the decision-making processes for maximizing profits in enterprises.
Verified Answer
LT
Laila Takinan7 days ago
Final Answer :
B
Explanation :
At the profit-maximizing level of output, marginal profit is zero because this is the point where any additional unit produced would not add to overall profit, indicating that marginal cost equals marginal revenue.
Learning Objectives
- Acquire knowledge about the decision-making processes for maximizing profits in enterprises.